February 2026 Case Study: Public Procurement and Poverty Reduction: Advancing SDG 1

Ending poverty requires more than social policies; it also depends on how effectively governments use public resources to deliver essential services. Sustainable Development Goal 1 (SDG 1) calls for eradicating extreme poverty and ensuring that vulnerable populations have access to basic services, social protection systems, and economic opportunities. Because governments spend a significant share of public funds through procurement, the efficiency and transparency of procurement systems play a critical role in determining whether these investments reach the communities that need them most.

In an analysis published by the United Nations Office for Project Services (UNOPS), efficient public procurement is highlighted as an important driver of poverty reduction and effective public spending. The article notes that “the world’s poorest and most vulnerable populations are the most dependent on public goods and services,” meaning they are disproportionately affected when procurement systems suffer from waste, corruption, or inefficiencies. It also observes that public procurement has evolved from a routine administrative function into “a key tool in economic policy and one of the most visible indicators of the quality of governance.”

 According to the article, “governments can buy more goods and services for the same amount of money if procurement processes are efficient,” allowing scarce public resources to stretch further. Over the past 15 years, many countries have therefore worked to modernize procurement systems by strengthening transparency, accountability, and professional capacity. These reforms help governments deliver essential services more effectively and reinvest savings into development priorities. In this way, stronger procurement systems contribute to SDG 1 by supporting Target 1.1 (eradicating extreme poverty) through improved service delivery, Target 1.3 (implementing social protection systems), Target 1.4 (ensuring equal access to basic services and economic resources), and Target 1.a (mobilizing resources to end poverty) through more efficient use of public funds.

Efficient public procurement is therefore not only a matter of administrative efficiency but also a critical component of poverty reduction strategies. By ensuring that public resources are used transparently and effectively, governments can expand access to essential services and maximize the impact of development investments for vulnerable populations. Strengthening procurement systems ultimately helps translate public spending into tangible improvements in people’s lives, supporting progress toward SDG 1.

Access the UNOPS article for further insights on the relationship between procurement efficiency and poverty reduction: https://www.unops.org/news-and-stories/insights/efficient-public-procurement-is-necessary-for-reducing-poverty-1